June 12, 2007 

MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES 

FROM: LINDA M. SPRINGER 

 DIRECTOR 

Subject: Report on Senior Executive Service Pay for Performance for 

 Fiscal Year 2006 

This report includes the rating, pay, and awards data for the third year of pay for 

performance for Federal executives in the Senior Executive Service. Agencies continue 

to effectively use their appraisal systems to make distinctions in performance and to 

make appropriate pay and awards determinations based on individual and organizational 

performance. Agencies also continue to improve their pay-for-performance systems, 

using their systems to link executive performance with organizational goals and focus on 

achieving organizational results. Training has also become a primary component of 

agency systems, ensuring that executives understand how their pay-for-performance 

systems operate and reporting to executives the results of rating, pay, and awards 

determinations. 

We expect agencies to continue to improve and refine their pay-for-performance systems. 

If you should have questions regarding this report, please contact the Excellence in 

Performance Management Implementation Group at 202-606-1633. 

Attachments 

cc: President’s Management Council 

 Chief Human Capital Officers 

 Human Resources Directors 
TABLE OF CONTENTS 

Executive Summary 

Chart 1 – SES Pay Differentiation for Career, Non-Career and Limited Term SES 

 Employees (Certified Agencies) FY 2004 – FY 2006 

Table 1 – Career SES Performance FY 2003 – FY 2006 

Table 2 – FY 2005 and FY 2006 Ratings for Career, Non-Career and Limited Term SES 

 Employees 

Table 3 – Aggregate Career SES Pay Distribution FY 2006 

Table 4 – Salaries for Career, Non-Career and Limited Term SES Employees FY 2005 – 

 FY 2006 

Table 5 – Career SES Awards FY 2003 – FY 2006 
SUMMARY SES PERFORMANCE STATISTICS 

 Fiscal Year 2006 

• The FY 2006 Report on Senior Executive Pay for Performance shows that 

agencies’ progress since 2004 in implementing performance management systems 

that differentiate between levels of performance and further, that they are paying 

and awarding executives commensurate with performance. 

• Agencies reported data on 7,137 Senior Executive Service (SES) members for FY 

2006, an increase of 4.4 percent over FY 2005, shown in Chart 1. 

• The percentage of career SES members rated at the highest level remained at 43.4 

percent, as displayed by Table 1. 

• Table 2 shows the total population of SES, regardless of appointment type, and an 

increase of three tenths of one percent rated at the highest level as compared to 

FY 2005. 

• Table 3 shows the rating distribution for all career executives under a five level 

system and those under a four level system. The average salary adjustments and 

average performance award amounts for career executives in FY 2006 is evidence 

that agencies are making pay and award decisions that differentiate between 

rating levels. 

• Table 4 compares average salary adjustments for the total SES population in FY 

2005 and FY 2006. The average salary adjustment dropped by seven tenths of 

one percent in FY 2006. 

• Over all, the percentage of career SES receiving awards in FY 2006 increased by 

seven tenths of one percent as shown in table 5. 
0 

0 0 

Chart 1

SES Pay Differentiation for Career, Non-Career and Limited Term SES Employees1

FY 2004 - FY 2006

Salary at Effective 

Date of 

Law

60%40%20%

0%

2 0 4

Post-Adjustment 60% 40% 20%0%

2 0 5

Post-Adjustment 60% 40% 20%0%

2 0 6

Post-Adjustment 60% 40% 20%

0%

$100,000 $109,000 $118,000 $127,000 $136,000 $145,000 $154,000 $163,000 $172,000 $181,000 $190,00

1. All salaries above Executive Level III are made possible by certification.
TABLE 1

Career SES Performance

FY 2003 - FY 2006 

FY 2003 FY 2004 FY 2005 FY 2006 

Career 

SES Rated 

Percent at 

Highest 

Level

Career 

SES Rated 

Percent at 

Highest 

Level

Career 

SES Rated 

Percent at 

Highest 

Level

Career 

SES Rated 

Percent at 

Highest 

Level

Percent Ch

FY 2005-FY 

AGENCY

AGRICULTURE 295 37.9% 280 39.6% 283 39.9% 307 39.4% AID 21 38.1% 17 52.9% 19 52.6% 19 52.6% COMMERCE 250 80.4% 263 49.0% 247 44.9% 247 42.9% DEFENSE 1,038 96.0% 1,049 99.5% 1,066 32.3% 1068 31.4% EDUCATION 54 98.1% 60 98.3% 66 53.0% 66 40.9% ENERGY 336 38.3% 347 41.8% 356 39.6% 360 34.2% EPA 255 64.3% 264 59.8% 265 30.6% 266 34.2% GSA 75 54.6% 75 25.3% 78 33.3% 69 23.2% HHS 331 99.7% 307 51.8% 320 55.6% 340 59.1% HOMELAND SECURITY -- -- 204 83.3% 218 54.1% 239 53.6% 

HUD 69 100.0% 69 40.6% 67 55.2% 72 43.1% INTERIOR 190 100.0% 219 21.5% 220 18.2% 211 22.3% JUSTICE 263 84.7% 523 60.4% 540 62.0% 563 62.9% LABOR 129 32.5% 141 34.8% 145 38.6% 144 38.2% NASA 384 75.5% 401 76.1% 399 52.6% 382 55.5% NRC 137 100.0% 150 9.3% 144 9.0% 149 9.4% OMB 57 31.5% 55 34.5% 53 22.6% 53 7.5% OPM 29 31.0% 42 50.0% 43 41.9% 36 27.8% SBA 31 45.1% 30 70.0% 31 51.6% 28 28.6% SSA 112 41.0% 133 54.9% 127 58.3% 141 64.5% 

STATE 109 98.1% 125 93.6% 126 59.5% 111 69.4% TRANSPORTATION 161 100.0% 180 31.7% 162 22.8% 175 30.3% TREASURY 369 52.0% 386 40.9% 385 43.6% 371 44.7% VA 261 67.4% 262 64.5% 261 61.7% 270 57.0% ALL OTHERS 503 86.4% 266 55.6% 283 53.7% 443 51.4% 

GOVERNMENTWIDE 5,483 74.5% 5,848 59.4% 5,906 43.4% 6130 43.4% 0.0%

So
TABLE 2

FY 2005 and FY 2006 Ratings for Career, Non-Career and Limited Term SES Employe

FY 2004 FY 2005 F

SES Rated SES Rated 

Rated at 

Highest 

Level SES Rated 

Rated at 

Highest 

Level

Rated at 

Highest 

Level

Percent at 

Highest 

Level

Percent at 

Highest 

Level

AGENCY 

AGRICULTURE 316 138 43.6% 321 141 43.9% 350 157 AID 17 9 52.9% 19 10 52.6% 19 10 COMMERCE 302 147 48.6% 283 127 44.9% 282 122 DEFENSE 1,120 1,110 99.1% 1,113 351 31.5% 1,173 369 EDUCATION 75 74 98.6% 76 37 48.7% 79 30 ENERGY 390 173 44.4% 367 142 38.7% 398 138 EPA 281 172 61.2% 287 98 34.1% 289 109 GSA 96 27 28.1% 98 32 32.7% 86 19 HHS 357 184 51.5% 365 211 57.8% 392 240 HOMELAND SECURITY 263 224 85.2% 267 155 58.1% 294 163 HUD 85 38 44.7% 81 50 61.7% 90 48 INTERIOR 249 54 21.7% 248 45 18.1% 239 52 JUSTICE 570 355 62.3% 582 375 64.4% 612 399 LABOR 173 77 44.5% 168 72 42.9% 170 78 NASA 410 312 76.1% 406 216 53.2% 397 222 NRC 150 14 9.3% 145 13 9.0% 149 14 OMB 66 22 33.3% 53 12 22.6% 66 5 OPM 55 26 47.3% 52 19 36.5% 42 13 SBA 44 31 70.4% 42 22 52.4% 38 11 SSA 142 80 56.4% 137 83 60.6% 149 96 STATE 156 134 85.9% 130 75 57.7% 147 104 TRANS 201 67 33.4% 185 45 24.3% 196 60 TREASURY 413 182 44.0% 408 189 46.3% 394 182 VA 272 175 64.3% 271 169 62.4% 278 161 ALL OTHERS 287 176 61.2% 306 161 52.6% 477 242 

GOVERNMENTWIDE 6,490 4,000 61.6% 6,410 2,850 44.5% 6,806 3,044 
TABLE 3 

Aggregate Career SES Pay Distribution

FY 2006

 (Rating Patterns Pursuant to 5 CFR 430.208(d) )

AGENCY

SES Rated 

Percent Rated at Level

Average Salary Before 

Adjustment

Average Performance 

Award

Salary Average 

Adjustment

Average 

Performance Award

as a Percent of 

Salary Before 

Adjustment 

Average Salary 

Adjustment as a 

Percent of Salary 

Before Adjustment

Average Salary 

Adjustment + 

Average 

Performance 

Award as a Percent

of Salary Before 

Adjustment

Av

Aw

Ad

P

H Pattern 

Rating Levels 5,429 Outstanding or Equivalent (5) 2,338 42.9% $153,429 $14,290 $5,644 9.3% 3.7% 13.0%  Exceeds Expectations (4) 2,435 45.0% $149,509 $8,080 $4,431 5.4% 3.0% 8.4%  Fully Successful (3) 636 11.8% $146,311 $2,379 $2,975 1.6% 2.0% 3.7%  Minimally Successful (2) 18 0.3% $149,768 $0 $0 0.0% 0.0% 0.0%  Unacceptable (1) 2 0.0% $145,381 $0 $0 0.0% 0.0% 0.0% 

F Pattern 

Rating Levels 701 Outstanding or Equivalent (5) 325 46.4% $155,457 $13,113 $6,059 8.4% 3.9% 12.3%  Fully Successful (3) 372 53.1% $151,318 $5,044 $4,396 3.3% 2.9% 6.2%  Minimally Successful (2) 3 0.4% $149,565 $0 $0 0.0% 0.0% 0.0%  Unacceptable (1) 1 0.1% $148,556 $0 $0 0.0% 0.0% 0.0% 

Source: Age
TABLE 4

Salaries for Career, Non-Career and Limited Term SES Employees 

FY 2005 - FY 2006

AGENCY

FY 2005 FY 2006 

 Average Rate of 

Basic Pay 

Before Salary 

Adjustment

Average Rate 

of Basic Pay 

After Salary 

Adjustment

 Average 

Salary 

Adjustment

 Average Salary 

Adjustment as 

Percent of Basic 

Pay Before 

Adjustment

 Average Rate 

of Basic Pay 

Before Salary 

Adjustment

 Average Rate 

of Basic Pay 

After Salary 

Adjustment

 Average 

Salary 

Adjustment

 A

A

Pe

AGRICULTURE $149,178 $157,060 $7,926 5.3% $153,717 $160,384 $6,673 

AID $149,096 $151,825 $2,826 1.9% $152,332 $153,855 $1,523 

COMMERCE $144,926 $149,141 $5,561 3.8% $148,447 $152,418 $3,971 

DEFENSE $144,047 $147,751 $4,086 2.8% $147,974 $152,001 $4,029 

EDUCATION $143,772 $148,863 $6,367 4.4% $148,077 $153,648 $5,547 

ENERGY $147,659 $153,113 $6,322 4.3% $151,681 $156,397 $4,716 

EPA $149,455 $153,874 $5,222 3.5% $153,233 $157,864 $4,640 

GSA $146,896 $150,897 $4,952 3.4% $151,746 $155,455 $3,709 

HHS $147,455 $153,619 $6,640 4.5% $151,430 $156,743 $5,313 

HOMELAND SECURITY $143,680 $149,667 $7,108 4.9% $149,018 $152,653 $3,638 

HUD $143,490 $147,506 $7,624 5.3% $148,929 $154,669 $5,740 

INTERIOR $145,956 $151,654 $6,233 4.3% $150,157 $156,077 $5,920 

JUSTICE $146,777 $152,684 $6,148 4.2% $150,755 $156,878 $6,123 

LABOR $146,132 $153,339 $7,253 5.0% $152,201 $157,887 $5,651 

NASA $145,760 $148,895 $4,839 3.3% $147,738 $151,615 $3,874 

NRC $149,330 $153,161 $4,055 2.7% $151,386 $153,605 $2,219 

OMB $144,598 $149,402 $4,804 3.3% $145,450 $151,618 $6,168 

OPM $145,566 $150,069 $5,224 3.6% $150,286 $155,742 $5,456 

SBA $151,236 $156,863 $7,100 4.7% $155,701 $160,619 $4,918 

SSA $147,532 $152,176 $4,846 3.3% $151,046 $155,435 $4,389 

STATE $146,458 $152,290 $5,742 3.9% $150,403 $155,862 $5,465 

TRANSPORTATION $147,078 $149,946 $4,675 3.2% $150,222 $153,348 $3,128 

TREASURY $144,888 $150,308 $6,129 4.2% $149,024 $154,504 $5,479 

VA $149,297 $154,436 $6,120 4.1% $152,727 $157,099 $4,372 

ALL OTHERS $150,721 $155,045 $4,324 2.9% $151,964 $155,810 $3,840 

GOVERNMENTWIDE $146,383 $151,266 $5,628 3.8% $150,274 $154,960 $4,687 

Source: Agency 
TABLE 5 

Career SES Awards 

FY 2003 - FY 2006 

AGENCY 

FY 2003 FY 2004 FY 2005 FY 

Average 

Award 

Percent of 

SES 

Receiving 

Awards

 Average 

Award 

Percent of 

SES 

Receiving 

Awards

 Average 

Award 

Percent of 

SES 

Receiving 

Awards

 Average 

Award 

Percent 

SES 

Receivi

Award

AGRICULTURE $12,491 80.6% $15,861 81.4% $15,945 83.7% $13,905 88

AID $7,257 33.3% $8,889 52.9% $12,444 10.5% $10,859 52

COMMERCE $10,570 71.5% $12,299 77.9% $11,749 81.2% $12,588 82

DEFENSE $16,418 56.1% $16,958 43.4% $14,788 85.3% $11,988 91

EDUCATION $9,658 64.1% $10,325 67.8% $10,652 76.4% $12,701 74

ENERGY $10,004 54.9% $8,863 64.0% $9,064 51.9% $9,417 64

EPA $10,889 65.9% $11,797 50.4% $10,509 62.2% $10,795 67

GSA $12,003 93.2% $12,705 97.3% $12,269 97.5% $12,806 97

HHS $12,059 25.8% $12,536 70.2% $12,852 82.2% $13,436 86

HOMELAND SECURITY -- -- $16,424 46.6% $14,935 49.4% $14,937 70

HUD $8,947 68.1% $8,092 60.9% $9,761 56.8% $11,008 93

INTERIOR $9,811 31.6% $13,017 30.1% $11,658 39.8% $12,628 55

JUSTICE $11,892 45.6% $11,858 56.5% $14,749 53.6% $15,172 56

LABOR $11,594 90.6% $11,999 89.4% $12,498 95.9% $13,959 91

NASA $13,259 51.9% $17,483 42.6% $15,857 48.4% $17,139 56

NRC $14,288 75.9% $16,946 62.0% $16,261 88.2% $16,716 83

OMB $11,957 40.3% $10,100 48.3% $11,579 35.8% $11,909 41

OPM $14,288 58.6% $15,044 69.0% $14,100 80.0% $15,442 97

SBA $15,228 83.9% $9,518 100.0% $9,721 69.4% $9,236 89

SSA $13,400 48.2% $14,419 63.2% $14,572 72.4% $14,487 75

STATE $12,668 38.5% $11,037 32.8% $10,976 32.3% $11,025 53

TRANSPORTATION $13,381 56.9% $10,790 51.4% $11,189 52.0% $8,749 78

TREASURY $14,813 50.1% $15,607 64.4% $15,173 65.0% $15,724 70

VA $14,152 75.9% $16,287 89.3% $16,713 75.4% $16,626 82

ALL OTHERS $12,800 60.9% $12,360 56.4% $13,146 37.6% $13,099 59

GOVERNMENTWIDE $12,883 57.4% $13,734 58.2% $13,814 66.5% $13,292 67.

Source